India’s smartphone slowdown opens door for refurbished premium devices

India’s smartphone market is dividing into two contrasting trends: shipments are declining as higher prices discourage upgrades, but demand for refurbished premium phones and trade-ins is accelerating. Consumers are increasingly finding cheaper routes to owning better devices.

Cashify, an Indian recommerce platform, said festive-season trade-ins of smartphones priced above Rs 50,000 have more than quadrupled from the previous festive period, while refurbished sales in the same segment have more than doubled. Exchange volumes rose 25 per cent, the total value of exchanged devices increased 40 per cent, and the average trade-in value reached Rs 15,105.

Smartphone shipments

The growth comes against a weakening backdrop for India's new smartphone market. Omdia estimated that Indian smartphone shipments fell 26 per cent year-on-year in the third quarter of 2026, while Counterpoint Research forecast a 12 per cent decline in festive-season volumes. Rising device prices and cautious consumer spending have made buyers more selective about upgrading.

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The pressure is particularly visible in the affordable segment. Counterpoint reported that shipments of smartphones priced below Rs 20,000 fell 47 per cent in the third quarter, as component-cost increases pushed prices higher and squeezed demand.

Demand for refurbished phones

Rather than paying full price for a new flagship, consumers are increasingly using existing devices to finance upgrades or opting for refurbished alternatives. Cashify said refurbished smartphones are approximately 26 per cent cheaper than new devices in its 'superb' grade and 36 per cent cheaper in its 'best-value' grade. Refurbished iPhones are about 25 per cent cheaper at the superb-grade level, while Android devices are approximately 31 per cent cheaper than their brand-new counterparts.

The shift suggests that India's appetite for premium smartphones remains intact, but affordability is increasingly determining how consumers access them.

"The key challenge this festive season will be the size of the active consumer pool," said Tarun Pathak, research director at Counterpoint Research, highlighting the growing importance of affordability and consumer purchasing power.

Top brands in refurbished market

Cashify's figures also indicate that trade-ins are becoming more than a promotional incentive. The 40 per cent increase in the total value of exchanged devices, compared with a 25 per cent rise in volumes, points to a higher-value mix of smartphones entering the resale channel. The average trade-in value of Rs 15,105 offers consumers an additional source of funding for their next purchase, although actual payouts depend on the device model and condition.

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At the brand level, Motorola and Google recorded growth of 79 per cent and 74 per cent, respectively, in festive upgrade and trade-in activity on Cashify's platform. Samsung registered the largest increase in volume. These figures reflect activity on the company's platform rather than overall industry sales.

Apple's installed base is also supporting the refurbished market. The iPhone 13 accounted for 23 per cent of all iPhones traded in on Cashify, retaining the largest share, although activity for the model remained flat. Growth in trade-ins has shifted towards the iPhone 14, 15 and 16.

On the refurbished side, the iPhone 13 continues to lead in volume, but demand is moving towards newer generations, particularly the iPhone 15, 16 and 17. Refurbished iPhones priced above Rs 50,000 have recorded nearly double the units and remain the only refurbished iPhone price segment performing above a normal month, according to Cashify.

Growth drivers

Geographically, smaller markets are emerging as important growth drivers. Tier 3 and smaller cities recorded 49 per cent growth compared with the previous festive season, ahead of the 39 per cent expansion across India's six metros. Delhi and Bengaluru together accounted for 30 per cent of refurbished sales. Trivandrum, Nashik and Rajkot also nearly doubled, according to the company.

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For smartphone manufacturers, the trend presents both an opportunity and a challenge. A stronger recommerce ecosystem can help brands retain customers, improve affordability and extend the lifecycle of devices. However, refurbished premium phones could also compete with new entry-level and mid-range smartphones, particularly as consumers become more conscious of value.

Changing market

The shift could encourage manufacturers to place greater emphasis on exchange programmes, resale value, repairability and longer software support. Organised refurbishment platforms may also gain importance as consumers increasingly look for reliable alternatives to purchasing new devices.

India's smartphone demand is not necessarily disappearing; it is changing how and where consumers spend. As new-device shipments face pressure, the growing appetite for refurbished premium smartphones suggests that the next phase of the market could be driven as much by resale and trade-ins as by new launches.